OBBBA Reporting Requirements
Change note: Separated asset-test, fund, QOZB, and investor reporting.
Key Takeaways
- • Section 1400Z-2(f) asset-test shortfall penalties, sections 6039K and 6726 fund reporting, QOZB information, and investor filings are separate obligations.
- • For returns required in 2027, Rev. Proc. 2025-32 section 4.59 provides filing-year-specific daily amounts and caps that vary by fund size and intentional disregard.
- • A filing failure does not automatically disqualify a fund or inevitably destroy an investor benefit. Apply the authority governing the specific failure.
What Are the Reporting Requirements for Opportunity Zone Funds?
A QOF's 90% asset test, fund reporting under sections 6039K and 6726, QOZB information, and investor filing obligations are separate requirements. A shortfall or filing problem has consequences determined under its own rule; it is not an automatic fund disqualification.
90% asset test
A QOF self-certifies on Form 8996. Section 1400Z-2(f) addresses a penalty for failure to meet the 90% asset requirement. Consult the Form 8996 instructions for the test and penalty calculation.
6039K reporting and 2027 filing-year figures
P.L. 119-21 section 70421 added reporting requirements. For returns required to be filed in 2027, Rev. Proc. 2025-32 section 4.59 provides a section 6726 penalty of $510 per day, capped at $10,000, or $51,000 if assets exceed $10,230,000. Intentional disregard is $2,550 per day, capped at $51,000 or $255,000. These are filing-year figures, not a universal daily penalty for every OZ compliance issue.
QOZB information supports fund reporting, while investors separately consider their own elections and filings. Obtain the actual facts and professional advice before characterizing an omission.